Verification Failed - There was a problem connecting to the server - iPod touch 6th gen iOS 12.5.7

I want to give our daughter's iPod to our son, so I did a full reset of our iPod via finder (recover iPod option) and installed the latest software. Created a kids-Apple ID for our son, started the set-up process (manual, because there is no iCloud back-up, this will be his first device), connected to our wifi network, entered his Apple ID..... "Verification Failed - There was a problem connecting to the server"

I tried countless times... The iPod was in perfect working order before